NEW YORK (Reuters) – Sam’s club’s $5 billion lawsuit against a Florida hotel chain over unpaid payroll was dismissed on Friday, ending a battle that has rocked the nation’s second-largest gambling company and prompted the company to hire its own legal team.
The dispute has raised questions about whether companies should be paid by a franchisee for making or accepting a bet.
In a court filing in Florida, the company said its employees, who earned the right to the money for participating in the sports betting industry, were paid the equivalent of less than $3 per hour.
In the lawsuit filed on Wednesday, the Florida Casino and Gaming Commission, the agency that oversees the state’s casinos, said it was the “last resort” for Sam’s to seek reimbursement.
The commission said that by taking a position in the case, Sam’s “is taking the last shot at a solution that may not be worth the cost and inconvenience.”
The case has already cost Sam’s about $2 billion and sent the company into turmoil.
On Thursday, the casino announced a series of layoffs, including two of its vice presidents, including its managing director, and that it would lay off more than 1,000 people.
The company’s shares fell more than 4 percent on Friday as investors awaited news about the outcome of the litigation.